Drop-shipping is a retail fulfillment method where a business does not keep the products it sells in stock. Instead, when a customer places an order, the business purchases the product from a third party and has it shipped directly to the customer. Drop-shipping eliminates the need for businesses to manage inventory, handle order picking and fulfillment, or manage shipping and logistics. This can reduce overhead costs and allow businesses to focus on marketing and sales. However, drop-shipping can also present challenges such as limited control over the product quality or shipping timelines, and managing the customer experience. Effective drop-shipping requires careful supplier selection, robust order management systems, and reliable logistics partners.
